The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Baidu, Inc (“Baidu” or the “Company”) (NASDAQ:BIDU) shares from March 22, 2021 through March 29, 2021, inclusive (the “Class Period”). Investors have until February 14, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Baidu is a Chinese multinational technology company specializing in Internet-related services and products and artificial intelligence.
During the week of March 22, 2021, Defendants sold a large number of Baidu shares while in possession of material, non-public information. According to subsequent media reports, Defendants unloaded large block trades late Thursday, March 25, 2021, before the Archegos story reached the public, consisting of shares of Archegos’ doomed bets, including billions worth of Baidu securities, sending Baidu’s stock into a complete tailspin. On this news, the Company’s share price declined by $61.43 per share, or approximately 23.1%, during the week of March 22, 2021 to March 29, 2021.
The lawsuit alleges throughout the Class Period, Goldman Sachs and Morgan Stanley sold a large amount of Baidu shares during the Class Period while in possession of material, non-public information about Archegos and its need to fully liquidate its position in the Company because of margin call pressure. As a result of these sales, Defendants Goldman Sachs and Morgan Stanley avoided billions in losses combined.